Slide 1: First Interstate BancSystem Montana Bank Tour
Exhibit 99.1 AFirst Montana August IBillings, Montanta Page PLACE 1Interstate 18, Montana Bank Bank WE 2011CALL Tour Tour BancSystem home…
Slide 2: Safe Harbor
Ms. Investor investor.relations@fib.com Safe This sale Company’s actual by terms entitled The expressed All they assumptions Iinference Montana First the forward-looking Marcy risk of are Harbor presentation and results, Interstate use loans, “Risk made Relations factors Bank should similar in ofMut
Slide 3: Agenda
8:30 AGENDA 8:50 9:10 9:15 9:20 9:40 9:55 10:15 10:30 10:45 11:00 11:15 11:45 1:15 1:30 1:50 Mr. IChief Montana Page First Lyle –3Executive –Interstate 8:50 9:10 9:15 9:20 9:40 9:55 10:15 1:30 1:50 2:00 11:15 11:40 1:15 10:30 10:45 11:00 Knight Bank Travel Ms. Mr. Lunch Mr. Mr. Break Tour Terry Jim
Slide 4: Our Company Profile, History and Strategies
Our First Founded Initial 70% over Control Operating Attract Maintain Community 71 Company 23 IOver Montana Page First banking consecutive Territory last organic Interstate 416 Public Interstate deposits market years 20 in Bank aProfile History Strategies solid, offices 1968 years leadership growth
Slide 5: Leading Markets and Deposit Market Share
Leading $ MSAs*/City Billings, Missoula, Casper, MT Sheridan, Gillette, Jackson, SD Bozeman, WY Kalispell, Riverton, Cheyenne, Spearfish, Helena, Ranked Data What Credit Current Geographic Expectations Wyoming South Vision Scott Impact IFinancial Montana Page First inLaramie, Rapid Millions Great Pe
Slide 6: Family History
Mr. Vice IFamily Montana Page First Jim Chairman 6Interstate History Scott Bank Tour ofBancSystem the Board
Slide 7: Family History
IFamily Montana Page First7Interstate History Bank Tour BancSystem
Slide 8: Family's Committed Ownership and Strategic Planning
Family’s Committed Parallel No 56% Scott Strategic Long-term IIntent Montana Page First strategic of 8Family is Interstate total planning to Perspective Planning planning Bank focus remain toplan outstanding Shareholder Ownership Company best Tour BancSystem is process toindependent takes interests
Slide 9: Succession Planning
Lyle Strong, Successor General Training Succession Linked Scott Board Current 6 10 Qualification IRole Montana Page First Scott Non-Scott Knight of 9Family Interstate ofFamily to internal the composition overview and Directors Bank Strategic toBoard Planning planning retirement be mentoring Ownershi
Slide 10: Wealth Management Vision
Ms. President, Our ITo Montana Page First bePatricia Vision 10 the Interstate Bank Premier Wealth Smith Tour BancSystem Management Wealth Management Group serving the high value clients of our Bank and our communities with an unrelenting focus on relationships and clients.
Slide 11: Wealth Management Operations
The 96 5 Wyoming/South Asset Trust 17 Billings Bozeman Great Kalispell Livingston Miles Missoula Polson Sturgis Assets ($ Retirement Discretionary Brokerage INon-Discretionary Montana Page First departments in employees locations Wealth Thousands) 11 Operations Falls Management City Interstate Under
Slide 12: Wealth Management Process and Focus Areas
Areas IV. Protection Executor/Trustee Transfer Plan Start Death Creating Inclinations Tax Philanthropy During Preservation of III. Utilize Wealth Preliminary Establish Review Design Set Create Implement Execute Monitor Recommendation Deliver IDetermine Montana Page First Assets I. II. team Concerns
Slide 13: Wealth Management Synergies
Synergies Investment Insurance/ Lender Commercial Real Trust Client Retirement Estate Mortgage Manager Portfolio Cards Credit Private Banking Specialist Philanthropic Mr. IChief Montana Page First Bob Estate 13 &Credit Interstate Plan Website Management Cerkovnik Development Personal/ Bank Advisor W
Slide 14: Credit Overview and Philosophy
CREDIT Local Approximate Loan Relationship-based $1.5 branch Cash Conservative Long In-house Branch-level 65% portfolio Credit Strong June Specific Pro-Active Workout Focus Special Quarterly Documented Collateral Aggressively Orderly IEffective Montana Page Firstmillion minimum 30, 14 flow underwrit
Slide 15: Diversified Loan Portfolio
Diversified Agricultural Change 3.1% 16.9% 36.4% Consumer Held 14.6% RE 0.7% Agriculture 4.2% Residential Total 13.5% (As Commercial Secured 14% Residence 60% Owner Loan 30% Occupied Non-Owner I56% Montana Page First Held ofOwner CRE for 15 Loans Balance: $Interstate Commercial Construction 6/30/11)
Slide 16: Non-Performing Loans and OREO
(As Construction Residential Const. 14% Land Commercial & Loan 69% Geographic Three Resort June 43% 71% ($ $300 $250 $50 $100 $20 $150 $30 $200 $0 Q2’10 ITotal Montana Page First Development in $0 of $10 of 30, millions) 16 Acquisition $50 $40 NPL’s Balance: Challenged Interstate 6/30/11) Q3’10 NPL
Slide 17: Credit Quality Trends
Non-Performing Evidence Diligent Quarterly Deterioration Stable Continual Steady Credit Allowance Special $ Q3 Q4 Q1 Q2 Markets IStressed Montana Page First in2011 2010 Thousands 17 Interstate Costs unemployment Quality decline for 87,091 in 293,899 268,450 312,441 319,130 340,075 305,925 Bank suppo
Slide 18: Operating Model and Accountability
Mr. Chief The 28 & Relationship decisions the guidelines Loan loan Market-driven products Local Leadership Financial Iand Montana Page First Local Market customer” Ed best First limit 18 Underwriting Operating market decisions advertising community Interstate Garding Operating practices Earnings Ban
Slide 19: Attractive Geographic Footprint: Montana
Geographic Attractive Projected Unemployment Most 1. I2. Montana Page First Population Preliminary 19 communities Interstate –population Bank Growing 49% Diversity growth unemployment Tour rate: BancSystem of total served Footprint 7.5%2 growth: isinthe deposits MTare projected vs4.71% trade rates n
Slide 20: Major Industries: Tourism and Agriculture
Major Tourism Summer/Winter Park Glacier Hunting Whitewater Hiking Snowmobiling Skiing National Yellowstone Sightseeing Significant Sugar Wheat Barley Crops Livestock IAgriculture Montana Page First20 Beets Interstate National and Park Bank Industries Rafting fishing Tour Parks BancSystem Opportunit
Slide 21: Significant Energy Industry and Housing Market
Significant Ranked Energy Coal Tied Wind Fastest for Indirect Oil Bakken Pricing United Mountain Modest Sales Notable 2010 Flathead Yellowstone Silver Measured earning IImproved Montana Page First wind with Reserves 21 Sales Median volume Potential lining Interstate States national declines househol
Slide 22: Montana Markets Economic Drivers
Billings Mildly Government Indirectly Gallatin Great MT workers Flathead Vacation Hardest Developing Economic Missoula Healthcare, Western 3 shutdowns; IEstimated Montana Page First Straight Economy 22Falls Interstate impacted hit MT and Markets Bank impacted years 3% 3.4% 2.3% 2.4% 2.1% Drivers: ur
Slide 23: Balanced State Budget and Business Tax Climate
Balanced No Ranked Short SD 1. Mr. IRegional Montana Page First The deficit and Mike 23 term Interstate Tax ND #6 State Bank President budget Huston spending unemployment Foundation Business areGovernment Tour shorter) Bancsystem $$ Tax Climate1 – 11.2 weeks (only
Slide 24: Attractive Wyoming Geography
Geography Attractive Wyoming Projected 3.85% Unemployment Personal national #2 over 1. I2. Montana Page First Population Preliminary inthe 24 the Interstate (1) average last income United Bank population –Growing of 38% 5growth Wyoming years, unemployment Tour rate: BancSystem States of up of 4.7% F
Slide 25: Significant Wyoming Industries
Significant 60% 32% 8% 2nd Tourism Government 13% 19% 4% Healthcare 7% Natural Oil Wind Uranium Coal IEnergy Montana Page First of Largest of 25& GDP Employment Interstate Initiative Tax GDP Employment Gas Alternatives Bank Industries Revenue Industry (State, Tour BancSystem Federal, Local)
Slide 26: Wyoming Revenue and Casper/Gillette Markets
Wyoming Revenue $150 School $964 $416 Permanent “Rainy Economic Casper/Gillette Unemployment Casper IGillette Montana Page First26 Million Interstate Market Capital Day” Market Surplus Bank State Drivers: Mineral Fund inTour from requested Share Construction Share Government 5.9% 2011 BancSystem 200
Slide 27: Sheridan/Buffalo and Laramie/Cheyenne Markets
Sheridan/Buffalo Sheridan Buffalo Economic Laramie/Cheyenne Unemployment Cheyenne ILaramie Montana Page First27 Interstate Market Market Market Bank Market Drivers: Tour Share 6.2% 6.6% BancSystem Share Share Share Tourism, Government, as ---23% 53% of -48% 12% June agriculture 30, University 2011
Slide 28: Riverton/Lander and Jackson Markets
Riverton/Lander Riverton Lander Economic 67% Residential Inventory Unemployment Jackson IDe Montana Page First novo of 28Interstate Market all Market in Market Bank 6.5% Drivers: sales 2001 RealTour realShare vs 6.7% 5.2% estate Share this BancSystem Estate Share 9.7% Agriculture Tourism year -as un
Slide 29: Western South Dakota Geographic Proximity
Mr. Regional Geographic Belle Piedmont Deadwood Sturgis Spearfish New Hill Wall Lead Rapid Hot Custer SOUTH IEdgemont Montana Page First John Springs City Underwood 29 Fourche City Interstate DAKOTA Bank E. President Valley Proximity Johnson Tour BancSystem
Slide 30: Attractive South Dakota Footprint
Attractive South Projected Unemployment Median 1. 2. Significant Black Tourism Mount Crazy Custer Terry Deadwood National Badlands Wall ISturgis Montana Page First Population Preliminary Drug 30 Peak/Deer Hills Dakota Horse Interstate State Rushmore Rally Home Park Bank population Growing Gaming Ind
Slide 31: South Dakota Industries
Small Livestock Agriculture Healthcare Veterans Custer Sturgis Deadwood Spearfish Fort Hot Rapid Significant Ellsworth 28th Military Unmanned Other Homestake/National Lumber IMining Montana Page First Springs Meade Bomb 31Industries Grain City Interstate Financial Administration Bank Air Aircraft/Dr
Slide 32: South Dakota Budget and Market Share
South Balanced No Ranked (1) (2) (3) Western First 22% 13% 3% Black Wells 7% Great 9% 20% Pioneer 8% US 17% Dacotah IAll Montana Page First The Small CNBC Deficit under Bank Interstate 32Western Fargo Hills Dakota Interstate Tax #1 #3 South Bank Bank Budget Business $100MM Spending Business Environm
Slide 33: South Market Growth Potential
South Market -Greatest Product Home Management Wealth Cash Credit Debit Community Rapid Sturgis Deadwood Spearfish Wall Custer Belle Mr. IChief Montana Page Rapid First Kevin 133 Management Fourche Cards Information Dakota City Interstate Loans Cards 11Share City Line potential Bank 1Guenthner 15Ran
Slide 34: Technology Governance and Organization
Committed i_Tech Implement Focus Security Look FIBS Strategic Capital Leadership Resource Monitoring Prioritization Approval Alignment Office Ongoing Project Technology Application Infrastructure Operations Enterprise System Data Web IT IBusiness Montana Page First Administration Risk Project Planni
Slide 35: Strategic Technology Investment Allocation
Data Core Strategic Infrastructure Electronic IT Franchise Illustration Enhance E-Commerce Online 1. Financial 2. IService Projects/Investments Programs Portfolios Strategy Montana Page First On-line On-Line Spending Strategic Communication Processing 35 Interstate Banking Chat FIB Systems Bank Mana
Slide 36: Looking Ahead: Technology Challenges
Looking Table Focus Three Scalability Flexibility Challenges Regulations Customers New Innovative Ms. IVice Montana Page First Maria President, competitors 36Stakes R’s on Interstate Ahead Bank Security (Resiliency, Valandra –technology –demands and will Able ToTour Community Opportunities handle Ba
Slide 37: Community Development Commitment
Community Strategic Commitment Business Dependent Role Oversee Collaborate Affordable Credit Small CRA Large Current Lending Service IInvestment Montana Page Firstof 37 Ratings market Bank Business Interstate and Community Test “Outstanding” Community Test Initiatives Vision Bank Environment Financi
Slide 38: Community Development Impacts and Tribal Opportunities
Indian Rocky Blackfeet Crow Billings Flathead Bear Bighorn Mato Pine Wind WYOMING Impacts Healthy Non-profits, Community Employee Customer Business Cross-sell Relationship-oriented IImpact Reputation Montana Page FirstRidge Butte 38 Tipila River Northern Interstate Country Boy toof Communities Medic
Slide 39: Second Quarter 2011 Financial Highlights
Mr. Chief Second Dividend Net Strong Tier ITotal Montana Page First Terry Earnings Interest 139 Risked Financial Common Interstate Capital Quarter Bank Yield Moore Margin Based toPosition Tour –Officer 2011 Common Capital BancSystem 3.3% Capital – Financial 3.84% ($13.64 10.56% Shareholders 16.01% (
Slide 40: Diversified Deposit Base
Diversified $5.8 (As CDs Time 19.2% Bearing Non-Interest 13.3% Interest Demand 16.8% 29.4% Savings 21.3% Low 1.00% 1.20% 0.60% 0.80% Q1’10 0.00% 0.20% I0.40% Montana Page First of Billion >100k Cost 40 Other Interstate 6/30/11) Q2’10 1.11% 0.94% 0.73% Bearing Bank ofBase in Funds Q3’10 1.05% 0.68% D
Slide 41: Investment Portfolio and Acquisition Strategy
Balanced, $ USG Agency-backed Municipals Other Total Acquisition Strategic Socially Geographic Competitive Target’s Cost Strong Low Well High-Touch Earnings Book Target Pro Historical Iand Montana Page First in Forma Projected Thousands Cost and Diversified 41 Agencies $2,022,729 Value Debt Intersta
Slide 42: Wrap-up: 2011 Focus
Mr. Wrap-up 2011 Credit Net Revenues Further Dependent Non-Interest ICost Montana Page First Lyle Interest Structure 42 Focus Interstate Quality Costs improvement Knight, Bank on Margin Peaking Income Loan and Tour BancSystem CEO Efficiencies Growth Mid-2011 in Deposit Cost
Slide 43: Investment Highlights
I First Leading Long Attractive Low-Cost Experienced Proven Strong Growth A Montana Page PLACE 43 Track Interstate Capital Business Opportunities Market Bank and Core WERecord Management Healthy Position CALL Tour Deposit BancSystem Position Model of home... Profitability Footprint Base Team